Lyft (NASDAQ:LYFT) announced third-quarter results exceeding revenue and profit estimates but fell short in gross bookings growth compared to its larger rival, Uber (NYSE:UBER). Lyft’s gross bookings, a metric introduced in Q3 to measure total transaction value, grew 15% year-over-year, while Uber’s mobility business saw a 31% increase.

Despite maintaining its position as the second-largest ride-hailing platform with a 29% market share as of September, Lyft faces concerns about economic uncertainty, and analysts suggest it might be more susceptible than Uber. Lyft’s market share has slightly increased from 27% at the beginning of the year. The company attributes its success to a competitive pricing strategy, improved cost structures, and a more efficient mix of airport rides, scheduled rides, and priority pickups.

Lyft reported 22.4 million active riders, a 10% increase from the previous year, facilitated by lower prices. The company expects fourth-quarter revenue to grow in mid-single digits sequentially, surpassing market expectations. Q3 revenue reached $1.16 billion, beating analysts’ estimates of $1.14 billion, while adjusted core earnings stood at $92 million, exceeding expectations of $82.6 million.

Lyft forecasts the current quarter’s adjusted core profit, a closely watched profitability metric, to be between $50 million and $60 million, higher than the anticipated $48.8 million, according to LSEG data. The positive results indicate Lyft’s ability to navigate challenges and maintain competitiveness in the ride-hailing market.

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